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Technology Buying Slump
mgcsinc writes "According to this Yahoo article from Reuters, IT buyers are continuing a trend of cutting costs, favoring utility over cutting-edge effect. Market researchers are estimating continuing doldrums in the industry and enterprise businesses see more 'bang for the buck' from making improvements in software as opposed to investing in new infrastructure. This is not necessarily awful, however, for those who hope businesses will start looking toward open source options as the cost effective alternatives..."
I think we are getting to a point where hardware is "ahead of it's time." That is, when I was doing design work on Adobe Photoshop 5, I had a 266 MHZ PII and I remember thinking: This is all the computing power I will ever need (which is something I'm sure most of us said, accept Bill Gates, who apparently never that ;). Well, 6 years later, we have 3 GHz processors, and I wonder how long it will take business type applications to tax those processors like Office 2K with Windows XP taxes my old 266. It's the poor performance with later versions of Photoshop, etc, that convinced me to upgrade my system four years ago.
Basically, the buying slump (hardware wise) might be because everyone's hardware does what they want at a good speed with plenty room to spare. If corperations want hardware sales to go up, they'll have to wait for more complex programs (or more wildly inefficient --a.k.a. poorly programmed -- programs) to come out. And Longhorn is right around the corner, coincidentally enough.